Thu, Mar 28, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

ICO tokens lost 54% of $24bn value: BitMEX Research

Thursday, January 17, 2019

Laxman Pai, Opalesque Asia:

The value of initial coin offering (ICO) tokens has reduced by 54% from starting figure of $24bn, said a latest research by cryptocurrency exchange BitMEX.

At peak valuation, these token allocations were valued at over $80bn. However, BitMEX Research notes that "in reality, liquidity was too low for this value to be realized." Furthermore, due to the tokens' precipitous drop in market value, these allocations are currently worth $5bn.

BitMEX cited the 2018 crypto bear market as one of the main reasons, along with $1.5bn worth of transfers to external addresses.

It explains: "Based on current illiquid spot prices, the ICO teams still appear to own around $5bn of their own tokens, money they essentially got from nothing, depending on ones view. At the same time the teams may have realized gains of $1.5bn by selling tokens, based on coins leaving team address clusters."

In conclusion, BitMEX Research estimates that ICO teams have profited nearly $13bn from their ICO process "with very little work, accountability or transparency," adding that while ICOs have proven to be "extremely attractive" for project founders, the results for investors "have not been as attractive."

BitMEX has conducted a research of the ICO market in collaboration with analytics firm TokenAnalyst, looking into treasury balances of more than a hundred projects on the Ethereum (ETH) network.

BitMEX previously reported that 12 ICO projects each of which h......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1